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Oil prices expected to remain above $80 per barrel until 2025: EIU

The EIU also predicts that oil prices will trade near $90 per barrel over the next few months. The EIU also predicts that oil prices will trade near $90 per barrel over the next few months.

The Economist Intelligence Unit (EIU) expects global oil prices to remain above $80 per barrel until the end of 2025, according to its latest projection.

This will have a significant impact on inflationary pressures in many countries, especially those experiencing a depreciation of their currency against the US dollar.

The UK-based firm, citing data from the International Energy Agency, noted that the global oil market entered a deficit in the first quarter of 2024 due to geopolitical tensions and supply and demand pressures that drove up prices. prices.

“We have revised our oil price forecasts and Brent Blend is expected to remain above $80 per barrel until the end of 2025. This will increase inflationary pressures in many countries as their currencies weaken against the dollar “.

The EIU also predicts that oil prices will trade near $90 per barrel during the coming months of this year.

“Even with minimal disruptions to oil shipments and traders overlooking concerns of a military escalation, prices are likely to remain high due to the global market deficit. OPEC+ is expected to adhere to reduced production quotas “, and Saudi Arabia will maintain strong voluntary cuts until mid-2024, gradually increasing production towards the end of the year.”

“We anticipate a modest increase in US production in 2024 before stabilizing in 2025. Despite rising prices, the number of US oil rigs is down 14% from last year, and companies are prioritizing dividends from shareholders”.

The EIU’s latest projection is expected to have an impact on Ghana’s economy, which is grappling with inflation, the depreciation of the cedi and an ongoing IMF programme.

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